CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Bankruptcy: Is It Time to Rethink Your Reasons for Not Filing?

For many, bankruptcy is an absolute last resort – the final step a person takes after he or she has tried ignoring the problem, negotiating with creditors, and maybe even begging for relief.

In some cases, bankruptcy is avoided because of its reputation. Of course, bankruptcy is nobody’s first choice for managing debt, but it can be an effective tool for helping you resolve serious financial challenges, once you understand a lot of its reputation is based on myth.

If you’ve been using excuses to avoid bankruptcy or you’ve heard it’s the worst thing you can do, it’s time to take another look. What are some of the most common reasons people avoid filing for bankruptcy and what should you know about the process before postponing filing for another day?

Bankruptcy Does Not Mean You’ll Never Get Credit Again

Bankruptcy has an effect on your credit, and there’s no mistaking, it’s a negative effect. You’ll struggle for some time after filing to rebuild your credit, and there’s a chance you’ll be turned down for loans because you filed.

But think about your current situation.

Would you be approved for a loan based on your current financial conditions? Is missing payments every month and getting deeper and deeper into debt with fees and penalties helping your credit?

Of course not.

So while your credit will take a hit from bankruptcy, it’s the last hit it will take before you begin rebuilding. Filing for bankruptcy is the first step you’ll take to a new financial beginning.

To learn more about rebuilding your credit after bankruptcy, check out this article from NerdWallet.

Bankruptcy is a Cop Out and I’m Responsible for My Debts

Many people avoid filing because they view it as giving up or cheating the system. They believe if they incurred the debts they should pay them back, in full.

The problem is paying back a debt in full isn’t always an option. The terms of a loan can make it impossible to ever repay it, especially with high interest rates, ballooning payments, penalties, and all of the fees associated with it.

Wanting to follow through on your commitment on a loan is admirable, but it isn’t always the smartest financial option. Not to mention it can put your family at risk.

Ask yourself “could my pride and my desire to follow through could cost my family their home or jeopardize my children’s education?”

Bankruptcy provides certain financial protections and as much as you don’t want to accept it, filing might be what’s best for your loved ones.

Bankruptcy is Embarrassing

The simplest way to deal with the feelings you’re having about bankruptcy is to take an objective look at your situation. The bottom line? It might be embarrassing or you might feel ashamed, but if it ultimately helps your situation, why worry about how you are feeling in the present moment?

Dealing with long-term money problems, fighting off creditors, and being taken to court to have your wages garnished or a lien put on your home is just as embarrassing – maybe more so – than filing for bankruptcy. Let go of your current attitude toward bankruptcy and accept it for what it is: a tool that can help you improve your situation.

If you’d like to learn more or you’re ready to discuss the benefits bankruptcy has to offer, contact the Law Office of Robert M. Geller at 813.254.5696.

Archive

Tampa Bankruptcy Law Blog

3 Ways You Can File for Bankruptcy

Ways to File for Bankruptcy Filing for bankruptcy is one of the best ways for many people to get their...
Read More

5 Benefits of Filing for Bankruptcy from Home

Filing from Home Filing for bankruptcy from home is one of the best ways to get your financial life back...
Read More

3 Tips to Help You File for Bankruptcy at Home

File for Bankruptcy at Home It might surprise many people to learn that you can file for bankruptcy from home....
Read More

3 Reasons Why Now is the Best Time to File for Bankruptcy from Home

File for Bankruptcy from Home Filing for bankruptcy from home is one of the safest and most convenient options you...
Read More

What is a Bankruptcy SOFA?

Bankruptcy SOFA Filing for bankruptcy requires a lot of paperwork. The majority of bankruptcy paperwork includes schedules that list your...
Read More

What is a Rule 2004 Exam?

Rule 2004 Exam Bankruptcy cases are handled in a bankruptcy court, but rarely do people who file need to make...
Read More

What is a Tuition Clawback?

Tuition Clawback Student loans are one of the primary causes of financial struggles and a common reason people ultimately file...
Read More

What is a Preferential Transfer?

Preferential Transfer When you file for bankruptcy, the bankruptcy court determines the order of payments.  This is true for both...
Read More

3 Tips for Choosing a Bankruptcy Lawyer

Bankruptcy Lawyer Bankruptcy is one of the most common reasons for someone to need an attorney. Filing for bankruptcy is...
Read More

What Does Presumption of Abuse Mean and What’s Its Role in Bankruptcy?

Presumption of Abuse Deciding to file for bankruptcy is an intimidating experience. It becomes even more so as the process...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo comodo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions